Business, 12.04.2021 09:50 smariedegray
Robinson Corporation has $27 million of bonds outstanding that were issued at a coupon rate of 10.950 percent seven years ago. Interest rates have fallen to 10.250 percent. Mr. Brooks, the Vice-President of Finance, does not expect rates to fall any further. The bonds have 17 years left to maturity, and Mr. Brooks would like to refund the bonds with a new issue of equal amount also having 17 years to maturity. The Robinson Corporation has a tax rate of 30 percent. The underwriting cost on the old issue was 2.70 percent of the total bond value. The underwriting cost on the new issue will be 1.80 percent of the total bond value. The original bond indenture contained a five-year protection against a call, with a 6 percent call premium starting in the sixth year and scheduled to decline by one- half percent each year thereafter. (Consider the bond to be seven years old for purposes of computing the premium.) Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Assume the discount rate is equal to the aftertax cost of new debt rounded up to the nearest whole percent (e. g. 4.06 percent should be rounded up to 5 percent).
Answers: 1
Business, 21.06.2019 18:30, gracie0818
What is the communication process? why isnt it possible to communicate without using all the elements in the communication process?
Answers: 3
Business, 21.06.2019 21:00, cam6836
Case in point 2.4 attaway airlines, part two back at attaway airlines, the morning meeting ended with no agreement between dan esposito and molly kinnon. in fact, a new issue arose. molly now says that the new accounting system is entitled to the highest priority because the federal government soon will require the reporting of certain types of company-paid health insurance premiums. because the current system will not handle this report, she insists that the entire accounting system is a nondiscretionary project. as you might expect, dan is upset. can part of a project be nondiscretionary? what issues need to be discussed? the committee meets again tomorrow, and the members will look to you, as the it director, for guidance.
Answers: 1
Robinson Corporation has $27 million of bonds outstanding that were issued at a coupon rate of 10.95...
Mathematics, 03.06.2021 16:30
Mathematics, 03.06.2021 16:30
Biology, 03.06.2021 16:30
Chemistry, 03.06.2021 16:30
Mathematics, 03.06.2021 16:30
Mathematics, 03.06.2021 16:30
History, 03.06.2021 16:30